Global Conference – Investors Meet

Chennai | April 2017

Vinod K. Dasari

This presentation has been prepared by Ashok Leyland Limited (“Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particularperson. This presentation may not be copied, distributed or disseminated, directly or indirectly, in any manner. Failure to comply with this directive may result in a violation of the applicable law in certainjurisdictions. By reviewing this presentation, you agree to be bound by the restrictions contained herein, and to maintain absolute confidentiality, regarding the information disclosed in these materials.This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribefor, any securities of the Company by any person in any jurisdiction, including in India, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investmentdecision or any contract or commitment therefor.

This presentation contains statements that constitute forward looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors andofficers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or otherwords of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in such forward-lookingstatements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statementsinclude, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations,etc. The Company does not undertake any obligation to revise or update any forward looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results,changes in assumptions or changes in factors affecting these statements. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forwardlooking statements. This presentation may contain certain currency exchange rates and the same have been provided only for the convenience of readers. No representation is made that the Rupee amounts actuallyrepresent such USD amounts or could have been, or could be, converted into USD at the indicated rates.

This presentation is not a complete description of the Company and may not be all inclusive and may not contain all of the information that you may consider material. The information contained in this presentationhas not been independently verified. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctnessor fairness of the information, estimates, projections and opinions contained in this presentation. Viewers of this presentation must make their own assessment of the relevance, accuracy and adequacy of theinformation contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such information and opinions are in all events not currentafter the date of this presentation. Further, past performance is not necessarily indicative of future results. Any opinions expressed in this presentation or the contents of this presentation are subject to changewithout notice. This presentation should not be construed as legal, tax, accounting, investment or other advice.

Any person placing reliance on the information contained in this presentation or any other communication by the Company does so at his or her own risk and none of the Company nor any of its affiliates, advisers orrepresentatives, any placement agent, promoters or any other persons that may participate in any offering of any securities of the Company shall have any responsibility or liability whatsoever, whether arising intort, contract or otherwise, for any errors, omissions, insufficiencies or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, fromany use of this presentation or its contents or otherwise in connection with this presentation.

This presentation has not been and will not be registered as a prospectus with any Registrar of Companies in India. This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, anadvertisement, a private placement offer letter or an offer document under the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and DisclosureRequirements) Regulations, 2009, as amended, or any other applicable law.

Disclaimer

GC April 20172

The Hinduja Group

Presence in 37 countries

Ashok Leyland-flagship company

More than 70,000 employees

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Vision Statement

To be in the Global Top 10

in M&HCV trucks (>7.5t GVW)

and

Global Top 5 in M&HCV buses

(8m and above)

in volume terms

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Ashok Leyland’s journey

India’s first

electric vehicle

launched

2016

India’s first

rollover

compliant school

bus - Sunshine

2016

India’s first Euro

6 truck

20132010

Neptune engine

launched

2016

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Profitable since inception

49 55 6283 83

5464

94 102114

89105

140

FY 16FY 15FY 14FY13FY 12FY 11FY 10FY 09FY 08FY 07FY 06FY 05FY 04

Sales volume (‘000s)

39273 48108 6053183047 89471

66666 78726

121530137208 132985

105608

144859

198773

FY13FY 12FY 11FY 10FY 09FY 08FY 07FY 06FY 05FY 04 FY16FY15FY14

Sales revenue (gross) - Rs. Million

19362714

32734413 4693

1900

4237

63135660

4337

294

3348

7218

FY13 FY14 FY15FY 07FY 06FY 05FY 04 FY16FY 08 FY 09 FY 10 FY 11 FY 12

Profit After Tax (PAT) – Rs. Million

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Challenge 2012-14 - Industry collapsed

208

286

363

320

242

FY ’12FY ’10 FY ’11 FY ’14FY ’13

+13%

-21%

-27%

+32%

Total Industry Volume in ‘000s

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<1997 1997 - 2010 >2010

99,000 244,000 265,000

Challenge 2012-14 - New competitors arrived

Total Industry Volume

Players 2 5 10

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Challenge 2012-14 - High investments leading to high breakeven

6,099

22,297

34,717

36,147

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

in 60 years ie., up to FY 08

40,816

58,444

in 5 yrs FY ’09 - FY ’13

Capital expenditure Investments (Equity)

Rs.

Mill

ion

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Challenge 2012-14 - Huge debt

4,769 4,572

11,422

19,581 21,273 24,784

29,962

35,795

2,2833,303

1.42

1.08

0.910.96

1.08

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

0.0

0.5

1.0

1.5

FY ’12FY ’11 FY ’13

24,57627,067

FY ’10FY ’09

24,350

Debt equity Debt - Long term Debt - Short term

34,534

47,217

De

bt

Equ

ity

(tim

es)

Rs.

Mill

ion

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Three overarching goals

To be the

No. 1 Commercial Vehicle maker in India by becoming No. 1 in M&HCV, No. 2 in LCV and No. 1 in Defence

Grow acyclicalbusiness

2:1 – Domestic to International

11GC April 2017

Three overarching goals

To be the

No. 1 Commercial Vehicle maker in India by becoming No. 1 in M&HCV, No. 2 in LCV and No. 1 in Defence

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Glorious year for AL – Continued our growth spree

205 244 315 314

26.1

27.2

31.332.4

20

22

24

26

28

30

32

34

0

50

100

150

200

250

300

350

FY 14 FY 15 FY 16 FY 17

TIV

('0

00

)

MHCV TIV MS (%)

+29%

+19%

MS

(%)

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Innovative products launched…

Captain Eco cabin -Tipper and Haulage variants

launched in Jan’ 17

10x2 and 8x2 Coal Tippers.

Truck

Sunshine - June 16

Circuit EV – Oct 16

Oyster– Dec 16

Bus

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We engaged the customers differently

Foot fall of 2500+ customers

Taking Customer video testimonials. 56 completed across Hub-Application-Segments

1150+ customers visited our manufacturing plants and R&D center.

Truck

Electric vehicle demo across the country

40+ Plant visits

Various programs covered 284 schools

Bus

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– From board to road in 18 months

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– wide range of customer applications

GC 2017 | 20-23rd AprilGC April 2017

17

School Bus of the year

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FY12

11141247

1629

2678

FY13 FY15FY14 FY16

Dealership 3S ALASC

SASSYFY17 WOW MMG

Significant growth in Network using innovative formats

Dealership 1S

Quick Service

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Pantnagar Plant won the Deming Award

World’s first Commercial Vehicle manufacturerTo win the prestigious Deming Prize

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Three overarching goals

Grow acyclicalbusiness

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LCV & PSB volumes increased

31775

FY 17

30695+4%

FY 16

(Numbers)

4% growth with single product for the first 3 quarters and slowdown in exports

▪ Retained our MS at 15%▪ Best in Industry - SMS of 54% and Paid

Service retention of 66%

▪ Entry in to Global automotive Engine program

▪ Range expansion - Small & High Horse Power engines

15551

FY 17

+6%

FY 16

16491

PSB volumes up by 6%, aided by new product variants and customers

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Expanding LCV product range…

0-3.5T (SCVs)

3.5-7.5T

LCV Passenger

Higher GVW

Power options

Seating options

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Three overarching goals

2:1 – Domestic to International

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Ashok Leyland - IO Dubai HQ inauguration

An Operations, Manufacturing, Product Management; and Process HO

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Organizing the eco system

Sequencing product launch- country wise

Building a sustainable Eco-system

ProcessesEnhance Network Retail FinancingBuild Brand

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We achieved efficiency in RAK

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Congratulations Bangladesh..5000 units achieved for the first time !!

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Oyster – Made in GCC, for the world

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Handing over of 475 Ashok Leyland buses to President of Senegal, H.E. Macky Sall on 07.10.2016

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Lets Conquer New Frontiers

The Future Beckons…

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Environment is changing

Service Product

Digital

Hardware

• Moving from world class products to services and solutions

• Moving from innovative trucks to digitally enabled

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BSIVGC April 2017

33

✓Upto 10% better KMPL than BSIII✓BSIV compliant upto 400 HP✓No POC✓No need for additional electronics✓No additional sensors✓Lower maintenance costs✓Lighter in weight than SCR✓Better payload than SCR

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Service – Key differentiator in Sales

• 86% Response and 96% Restoration. Best in industry.

• Industry first en route PIT STOP service support

• International operations support cell

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Dealership revenue up by 39% and improvement in customer satisfaction

FY17FY16

530

737Dealership Revenue (Rs. Crore)

791 794

FY17FY16

Sales satisfaction Service satisfaction

FY17FY16

673 699

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R & D – one of Asia’s best

• Fully equipped – state of the art R & D centre in Chennai

• Capable of styling, design, proto build and testing

• State of the art equipment 6 poster chassis dynamometer, complete test track with torture track and engine testing facilities.

Transient cycle engine dyno Fully automatic dynocontrollers

Hydraulic/eddy current

Articulated test track 6 Poster teast rig

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Testing & validation - vehicle Level

NABL

CERTIFIED

LABORATOR

Y SINCE 2008

SIX POSTER TESTING

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Frontal Impact Test

Testing & validation– component level

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Grade ability

Clutch drop Water wading

Testing and validation – vehicle level

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Corporate Plan FY 18-22 | 9-10th March 2017

Talent Acquisition

Talent Development▪ Build leaders from within largely

▪ Acquire specialized talent only▪ Increase capacity across businesses

▪ Culture of High Performance▪ Groom Entrepreneurial Leaders▪ Reward Performance

▪ Onboard diverse and young talent▪ Create performance differentiators for global workforce▪ Build Leadership Succession

Talent Framework

@ AL

TalentManagement

HR Strategy to achieve HR Vision

AGILE Workforce

ENABLED Workforce EMPOWERED Workforce

Capacity

Culture Capability

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Blessings scheme (Ashirwad Yojna): Pant Nagar

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Diversity and inclusion

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Giving back to society(CSR)

Ashok Leyland’s CSR activity 'Road to School' aims to improve quality of education, nutrition and health of school children. Covers about 15000 children in 108.

‘Ashirwad Yojana' started in 2010. Recently inducted the first batch of 135 youth who have successfully completed the 4-year Diploma in Manufacturing Engineering Program

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Thank you

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